The payout is scheduled for 24 July after China’s State Administration for Market Regulation signed off on transitioning two infant formula registrations to a2-branded products. That approval covers registrations the company acquired earlier and marks the final regulatory step linked to A2 Milk’s purchase of the a2 Pokeno manufacturing facility.
Completion of this process means all required approvals for the deal are now in place. It also removes A2 Milk’s previous right to unwind the Pokeno transaction.
Infant formula registrations are tightly controlled and essential for access to the Chinese market. The ability to shift acquired product registrations onto its own a2-branded range strengthens brand consistency and supports the long-term distribution strategy.
A fully franked and unimpeded special dividend of this size signals confidence in cash generation and balance sheet strength after the acquisition. Management now regards the major regulatory risks around the Pokeno deal as cleared.
